Custodial Account
Also called: UTMA account, UGMA account, junior account
A custodial account holds assets for a minor, managed by an adult until the child reaches the age of majority and the money becomes legally theirs. That handover is the defining feature and the usual regret: an 18- or 21-year-old can spend it on anything. Custodial assets also count heavily against the child in college financial-aid formulas, far more than parent-owned assets, which is why 529 plans are usually the better vehicle for education specifically.